Question of the Day: What is the average fee when you overdraw your checking account using your debit card?
With some banks removing them altogether, are we over overdraft fees? Not even close.
Answer: $26.61
Questions:
- What do you think are the reasons that people spend more money than what they have in their checking accounts?
- What has been the recent trend with the average amount of overdraft fees? Why do you think some banks have started removing overdraft fees?
- What are the ways that you can prevent your account from being overdrawn (spending more than you have in your account)?
Behind the numbers (BankRate):
While the average amounts charged for overdraft and NSF fees have decreased sharply, these fees are still charged by 91 percent and 70 percent of accounts, respectively, Bankrate’s study found.
“Fees for overdrawing an account have waned but are still charged by the overwhelming majority of accounts and can run as high as $38,” McBride says. “Opt out of overdraft protection on ATM withdrawals and small dollar debit card purchases but check your available account balance before initiating transactions to avoid overdraft fees altogether.”
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The NGPF Online Bank Simulator is a great way to teach your students how to manage an online bank account (and avoid those pesky overdraft fees!).
About the Author
Ryan Wood
Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.
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